2010_9-10_Commonwealth

Buyer agent: Beware

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VREB ComEs KnoCKing (pagE 4) • ownER/agEnt signs? (pagE 10)

A journal for real estate professionals published by the Virginia Association of REALTORS® • www.VARealtor.com

September/October 2010

Andrew Kantor, Editor

andrew @VARealtor.com

1 SEPTEMBER/OCTOBER 2010

firstwordANDREW KANTOR

Published by The Virginia associaTion of realTors®

The Business Advocate for Virginia Real Estate Professionals

cindy stackhouse, gri President

John dickinson, cciM, griPresident-Elect

Trish szego, crb, crsVice President

John daly, sfrTreasurer

John Powell, abr, crb, crs, griImmediate Past President

r. scott brunner, caeChief Executive [email protected]

ben Martin, cae Vice President, Marketing & Communications [email protected]

andrew Kantor Editor & Information Manager [email protected] For advertising information, Brittany Sullivan at (410) 584-1968 or e-mail [email protected]

The mission of The Virginia Association of REAlTORS® is to enhance its membership’s ability to achieve business success. Commonwealth magazine (ISSN#10888721) is published bi-monthly by the Virginia Association of REAlTORS®, 10231 Telegraph Road, Glen Allen, VA 23059-4578; (804) 264-5033. Virginia Association of REAlTORS® members pay annual dues with a one-year subscription included within their dues. Periodicals postage paid at the Glen Allen, VA post office and additional mailing offices. USPS Per. # 9604.

Postmaster: Send address changes to: Commonwealth magazine, 10231 Telegraph Rd., Glen Allen, VA 23059-4578.

custom Publishing services provided byNetwork Media Partners, Inc. Executive Plaza 1, Suite 900, 11350 McCormick RoadHunt Valley, MD 21031

get it? got it? good! In addition to the print version of Commonwealth, VAR publishes electronic newsletters at regular intervals, including...

If you’re not receiving newsletters via e-mail from time to time, it may be that we don’t have your correct email address. Contact your local association of REAlTORS® to enter your address in the database. Also, check the spam filter on your computer and authorize any email from Varealtor.com.

Varbuzz.com. Your virtual café for real estate news, views, and issues. Read the perspectives of your fellow Virginia REAlTORS®. Join the conversation at Varbuzz.com today.

...the online version of our print magazine, published every month.

good luck with thatIf you look out my father’s front door, you’ll be looking straight down a street. His block forms the top of a T, and his house happens to be at the center.

This has never been an issue. But times change. Through the years the neighborhood’s demo-graphics have shifted — at various times it’s been Jewish, Korean, Irish, Hispanic, and who knows what else.* These days it’s mostly Chinese, which brings me back to his house and its location.

A local Realtor®, herself a Chinese immigrant, told my father his house had bad feng shui because it sat at the end of a street like that. Apparently all the good luck spills out of the house and down 58th Road. If I remember correctly, that eventually leads to the Van Wyck Expressway.

You never know what might “stigmatize” a property.

The owners of one house worked to change its number from 112 to 108. It’s in Amityville, you see, and prospective buyers might Google “112 Ocean Avenue.”

On the other hand, in 2006 New York’s Tishman Building sold for a record $1.8 billion. You might not know the Tishman Building, but you know its address: 666 Fifth Avenue.

Move up the Hudson to Nyack and one Helen Ackley, who profited nicely from her “haunted” house. But when she sold it without mentioning this fact to the buyer, he was less than

pleased. He sued for rescission of the contract and damages for fraudulent misrepresentation.

(He won rescission but not damages. In an famous decision, the court ruled that “As a matter of law, the house is haunted.”)

Some states require disclosure of “stigmatized” properties, what-ever that means. Should my father disclose the good fortune pouring out his front door? And if a house is haunted, who’s to say that all spirits are bad?

California’s law defies logic as only it can: Sellers must disclose a murder or suicide on the property if it occurred within the past three years, and — if it was particularly gruesome — the details.

Does your typical poltergeist dissipate after only three years? Apparently so, at least on the west coast. Who knew?

So count your blessings, among which is the fact that most of Virginia’s laws at least make sense. That should keep you in good, well, spirits. l

* Technically they’re Jewish-American, Korean-American, etc., but in Queens, if you had to add “-American” every time, you’d never finish a conversation.

SEPTEMBER/OCTOBER 2010 www.VAREAlTOR.COM2

APEX Award of Excellence winner

look for this icon; it tells you when a story relates to one of VAR’s six goals for 2010. In this issue, see how the REal Show builds on the foundation of our previous conventions, adding more and better sessions, speakers, and education opportunities. And visit www.REalShowVA.com to learn more.

CorrectionIn the July/August issue’s “life lessons” section, we misidentified the board involved. The decision were those of the Real Estate Appraiser Board, not (as we wrote) the Real Estate Board. we apologize for any confusion.

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The latest news and

announcements for

Virginia’s Realtors®

Questions and answers

about Virginia real

estate law

In a high-tech world, it’s

often the low tech that

stands out

Where should you put

that Equal Housing

Opportunity logo?

When real estate pros

break the rules ... and

get caught

quickhits

legallines

formfactor

lifelessons

accessibletech

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rpacreport

varbuzzcontest

contactvar

lastword

Buyer agent: BewareLots can be wrong with a house, and concerned buyers will turn to their Realtors® for help. If your clients are worried about asbestos, leaking oil tanks, meth-lab residue, or a lot more, here’s a guide to pointing them to the right resources — while staying out of trouble.

SEPTEMBER/OCTOBER 2010VOluME 17 ● ISSuE 5 contents

in every issue

departments

features


VREB to begin random inspectionsDPOR's Compliance and Investigations Division is going to begin random inspections of real estate firms in Virginia — so says the Virginia Real Estate Board in its summer newsletter.

These inspections are random, not surprise, so if your firm is cho-sen you’ll have time to prepare. The main goal is to check the status of escrow funds being held, verify licenses, and make sure financial records are in order, but while they’re there inspectors will also make sure the firm is comply-ing with all regulations.

That means a review of a firm’s policy and procedures manual, checking on the availability of training, and making sure agents are properly supervised.

VREB suggests that now is a good time “to conduct a thorough internal review of your firm’s super-vision practices, firm policy and procedures manual, availability of training, licenses, escrow accounts and record keeping practices.”

(Not sure you're in compli-ance with the regs? VAR can help. Check out our members-only Broker Center at VARealtor.com/brokercenter for start-ers, where you'll find links to our Broker Toolkit, Virginia Real Estate Broker Field Guide, and informa-tion about the Virginia Managers Council — all of which will help you be ready for a random inspection.)

Home warranty company RESPA rule changesIt’s legal for real estate brokers and agents to be paid for services they pro-vide for home warranty companies, said HUD, as long as they aren’t paid for referrals. (There are a few other conditions, too.)

The point of the HUD ruling was to clarify if and when a home war-ranty company can pay a real estate professional (without violating the Real Estate Settlement Procedures Act), particularly the provisions on kickbacks and unearned fees.

Here’s the gist, but you should head over to HUD to read the full inter-pretive rule (www.VARbuzz.com/go/HUDexplains):

If you accept a payment from a warranty company to market that company to a particular homebuyer or seller, that’s an illegal kickback. So, for example, you can’t take payments for referrals.

However, depending on the particulars, an HWC may compensate a real estate broker or agent for services that are “actual, necessary, and distinct from the primary services provided by the real estate broker or agent.”

That’s just the basics, and you should know the details. Go to HUD and get ’em.

Banking on Realtors® VAR is now an official partner of the Realtors® Federal Credit Union, the NAR-created, member-owned, not-for-profit financial institution. (Don’t call it a bank!)

That means great rates on everything from investments to loans, plus the usual money market, savings, and checking accounts.

All Realtors® and their immediate family members are eligible for lifetime member-ship. Visit RealtorsFCU.org to learn more and join online — just enter promotional code VA11.

legal actions

Out of NAR

Risk managment

quickhitsANDREw KANTOR

VOlUME 17 ● ISSUE 5 SEPTEMBER/OCTOBER 2010

5

This year’s Property Management Coalition Conference (one of VAR’s most popular events) is looking good. Darned good.

We’ve got top-rated presentations from the likes of keynote speaker Melissa Prandi (bestselling author of The Complete Idiot’s Guide To Success as a Property Manager), FutureLaw’s Chip Dicks, and prominent real estate attorney Grimes Creasy.

You can learn everything from the basics (escrow accounts and fair housing law) to the latest (going paperless). Pick up risk management tools from fair housing to building codes — and some of the nitty-gritty like how to successfully evict a tenant and choos-ing an HVAC system.

Whether you’re a rookie or a pro property manager, this is the must-attend event of the year — and the best way to stay up to date — and out of trouble — in your business.

The details: November 17—19, 2010Omni Charlottesville Hotel• Full Registration (on

or before November 10) is $179 online; add $20 if you want to use paper mail or fax, or add $50 to register on site.

• One-Day Registration (on or before November 10) is $89 online; add $20 if you want to use paper mail or fax, or add $50 to register on site.

• Casino Night is $40 on or before November 10, $50 on site.

For more information and to register, just go to VARealtor.com/PMCC.

The latest episode of The lem &

Blake Show is now available for your

viewing pleasure at VARealtor.com/

lemblake6, where VAR attorneys discuss

earnest money deposits.

New VAR forms: Bigger is betterBigger, you said. And who are we to argue? By popu-lar demand, we’ve enlarged the font in the fillable fields in Residential lease (form 200) and Residential Contract of Purchase (form 600). You can download the revised forms (free, natch) in the VAR Forms Center at VARealtor.com/StandardForms. (The font size is the only change.)

Property managers — your conference awaits


Legal department changesIn coming weeks, you’ll notice a number of changes and improve-ments in the services you receive from VAR’s legal Department. These enhancements will allow us to pro-vide better and more timely service. Some major changes you might notice: • The operating hours for the legal

Hotline are 10 a.m. – 4 p.m. • Our pledge is to return any legal

Hotline call within 24 hours. • All legal Hotline questions (even

those received in writing) will be answered by telephone. There are many more changes,

including new staff and new resources. See it all at VARbuzz.com/go/legalchanges.

Fastest (and slowest) short sale servicersLenders are taking heat from buyers, sellers and Realtors® for the length of time and complexity involved in going through a short sale. You've probably got your hunches about which banks are the worst to deal with and which ones take the most time to complete a transaction. Well, HousingWire recently published a list that ranked some major mortgage servicers by how quickly they conduct short sales. Here's the scoreboard:

Quickest: GMAC, averaging about 6 months per transaction2nd fastest: CitiMortgage, about 7.5 months per transaction3rd place: Wells Fargo, roughly 8 months per transactionLast: Countrywide (Bank of America) at 13 months per transactionAny surprises? Join the discussion at VARbuzz.com/go/fastandslow.

Short sales

A reinvented conventionOur goal for 2010 was to create the can’t-miss event of the year for Virginia Realtors®. The result is The REal

Show, our reinvented Convention & Expo. We asked, you talked, and we listened — and the REal Show was built on your suggestions.

First of all, there’s no more thinking small. We’ve made a three-year commitment to Virginia Beach — not only will that make planning easier for you (and us), the big, beautiful Virginia Beach Convention Center gives us room for more classes, more networking, more exhibits, and of course more Realtors®.

If you’re reading this at the Virginia Beach Convention Center,

just look around. We don’t have to tell you that the REal Show is unlike any other VAR convention you’ve ever seen. But if you didn’t attend, and you’re reading this at home, you really missed out.

The program is bigger and bet-ter — and more in tune with what our members told us they want and need. Not only do we have more sessions, more CE, and more specialty classes than ever, we’ve also separated the VAR governance meetings so attendees can choose which and whether to attend.

Then there’s the expo, with exhibitors from all over the state — in fact, there are more of them in 2010 than ever. Even better, there are mini educational sessions in the Expo itself, not to mention all

sorts of contests, incentives, and giveaways.

Part of thinking big is thinking about the little touches that make the show easier and more enjoy-able for attendees. This year we’ll have free hotel shuttles, an on-site Realtor® store, wireless Internet access just about everywhere, and a beach party — Realtor® style — Saturday night.

VAR’s Convention & Expo is our premier event of the year, and for 2010 we made it the best one yet. ●

quickhits

VOlUME 17 ● ISSUE 5 SEPTEMBER/OCTOBER 2010

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Lend us your expertiseNow’s your chance to volunteer with VAR. Need a reason? We'll give you three (and it starts with making more money):

It’s simple, really: The more you learn, the more you’ll earn. Anyone can read news, blogs, and, well, Commonwealth. If you want to stay on the leading edge, you need to connect with your peers from across the state.

And that’s why volunteering with VAR works.When you join a VAR committee or workgroup, you

hear and talk about stuff that will affect your business — before the competition does.

VAR leadership appoints only the most qualified brokers and agents. Competition for seats is tough, so the quality of people on VAR's committees is top-tier.

One more reason: When you volunteer with VAR, you get to represent your local area in policy decisions

“Let it crash.” The buzz on VARbuzz“Housing woes Bring a New Cry: let the Market Fall” was the headline of a New York Times story. The gist: Government programs aren’t working well to restore the housing market; could letting the market crash be the best long-term solution?

Virginia Realtors® had some strong opinions they shared on VARbuzz (VARbuzz.com/go/crash):

• Allowing the free market to work is always a good idea. It is working against the order of nature to try to direct the housing market. —Karin whitley

• ‘[A]llowing the free market to work’ [...] hurts homeowners more than anyone else, and that’s really too bad. But unfortunately it seems there’s not too much else that can be done. — John Clark

• [A recovery] will take many months and prob-ably years to accomplish and can only be initi-ated by a demand created by real life situations and not artificial stimuli. —Joe Vita

There’s more, and you oughta join in the discus-sion. Unless, that is, you don’t have an opinion.

working with VAR

that affect you and your clients. It’s the only way to insure that your local area is heard during VAR policy deliberations.

(And if you're a broker, you owe it to yourself to urge your agents to volunteer with VAR. Why wouldn't you want an army of more knowledgeable, better trained, better networked agents?)

Go to VARealtor.com/Volunteer and sign up to work with VAR. We’re waiting for you. ●

“


legallinesBlAkE hEgEMAn

Intelligent agentsAgency is a broad and complicated topic that can be confusing. Below are a few questions and answers that will address some of the most common misconceptions we hear on the legal hotline.

“No realistic opportunity for confusion”

Q. I am representing the seller; do I have to disclose this fact to a buyer who is being represented by a buyer’s agent?

A. In Virginia, a licensee must disclose that he represents someone only to an unrepresented party that he is dealing with. This leads to a few conclusions:

(1) In a co-brokered deal, where both parties are represented by dif-ferent firms, no agency disclosure is required by law. This is as it should be. If I, as buyer, have hired an agent from Firm A to represent me, how could I reasonably believe that an agent from Firm B represents me, especially when the chances are good I will never deal with the agent from Firm B? It’s really this simple: If I have hired agent Bill from ABC Realty to list my house, I don’t need agent Sally from XYZ Realty to give me something in writing telling me she doesn’t represent me, or that she represents the buyer. (As to this latter disclosure, she is obligated to my agent to disclose that she is acting as a buyer agent. )

(2) This means that single agency disclosure is required in only three situations: (i) subagent to unrepresented buyer, who might well be con-fused about who the selling agent represents; and if it is the seller, the selling agent must be sure the buyer knows that; (ii) buyer agent to FSBO, because upon agreeing to let an agent show his house and agreeing to pay a fee if there’s a deal, the FSBO might think he’s just hired an agent – the buyer agent must be sure the FSBO knows he works for the buyer; and (iii) listing agent to unrepresented buyer customer.

In all cases of dual and designated agency in Virginia, both clients must sign a disclosure and consent to the representation. However, in single agency situations disclosure is required only when one party is represented and the other is not. When both have hired agents and are represented, there’s no realistic opportunity for confusion, and thus no need for disclosure.

All agency disclosure required by law in Virginia can be accomplished by use of VAR Form 100, available online at VARealtor.com.

“A good policy is the key”

Q. An agent has decided to leave her firm. Does she

have the right to contact the firm’s clients in an effort to induce them to come with her before she noti-fies the firm ?

A. While an agent at the firm, she has a fiduciary duty to the firm to act in its best interest. It is improper for an agent of the firm to solicit firm business for another company while engaged by the firm. A prohibition against such action should be written into brokerage office pol-icies and independent contractor agreements; firms add teeth with a provision that says if an agent solicits the existing clients of the firm while still engaged, she will forfeit all commissions due from such clients’ transactions. A good policy is the key.

In all cases of dual and designated agency in

Virginia, both clients must sign a disclosure and

consent to the representation.”

legallines


Q. listing agent Joe is leaving Firm A and going to Firm B, and the sellers want to transfer their listing

from Firm A to Firm B. Can they do that?A. Firm A owns the listing and is not obligated to

release the sellers simply because Joe is leaving. Sellers may request that Firm A release them from the listing, but the firm is not obligated to do so unless the listing agreement specifies that the sellers will have the right to terminate the listing if Joe leaves the company. Even if Firm A agrees to release the sellers from the listing, Firm B would have to agree to enter into a listing. The listing can’t just be “transferred” from A to B without

all parties’consent, including the sellers (who might want to leave Firm A now that Joe is gone, but don’t want to list with Firm B for whatever reason).

Even if Firm A doesn’t agree to release the sell-ers from their listing, the sellers may unilaterally remove the firm’s power of agency and right of sale and demand that the firm remove the property from the MLS. Therefore, if the sellers say, “Joe’s gone, please remove our listing from the MLS,” Firm A must comply. However, this action would in all likelihood be a breach of their agreement with Firm A, entitling it to damages as set out in the listing agreement or at law.

Q. An agent in my office is selling his own home and has heard that he doesn’t have to use the Owner/Agent sign anymore. Are Owner/

Agent signs still required?A. The policy of the REB on this issue is that the public has a right to

be informed if they are dealing with a real estate professional on the other side of the deal.

So let’s assume a licensee is selling his own property. Suppose he has listed his property with a licensed real estate brokerage

firm. If so, the firm’s ads will have its name displayed, and the public will know a real estate professional is on the seller’s side. In these cases, the signs do not need to say “Owner/Agent” or the equivalent.

Suppose the owner is not listing the property with a firm. Now all signs will be the equivalent of FSBO signs, and unless they and the ads give the appropriate notice, the public will not know they are dealing with a professional. Thus, the signs/ads must make that clear. This would also be true if the of the agent’s personal advertising and signs done outside the firm, even if the property is listed.

So, in the usual situation, if it’s listed the signs do not have to say “Owner/Agent. ” However if not listed, all signs and ads have to have this disclosure.

Also please remember that in all cases, the contract must contain the disclosure.

“The public will not know they are dealingwith a professional”

“The firm is not obligated to do so”

legal lines is written by VAR Associate Counsel Blake hegeman. Please note that answers to legal lines questions are informational only. Consult your own legal counsel for legal advice.

You can find more Q&A from the archives of our legal hotline in our legal Resources Center at VARealtor.com/legalresources.

11VOluME 17 ● ISSuE 5

“Routine to the transaction”

Q. Does delivery of a property owner’s association packet (POA) to the buyer agent amount to delivery to the buyer?

A. Yes, we have the authority to accept documents that are routine to the transaction on behalf of our clients. For example, would anyone argue that delivery of the buyer’s loan approval, notice of loan rejec-tion, inspection report, executed offer, lead paint inspection, disclosure statement, kick-out notice, or any of another dozen types of documents would not be effective if delivered to the agent? The heart of agency is that the actions of the agent taken within the scope of the agent’s authority are binding on the client.

However, if the client withdraws or withholds its authority from the agent to receive a certain document on the client’s behalf, and this is communicated to the other side, then that notice is effective, and the delivery would have to be made to the client. Why? Because an act performed outside the scope of authority is not effective to bind the client. ●

Monday through Friday, 10 a.m. – 4 p.m.The VAR Legal Hotline is a free, members-only benefit for brokers. You can receive answers to questions about Virginia real estate law, and timely information on legal and regulatory issues concerning the real estate industry.

The Legal Hotline provides legal information, not legal services. You should consult your attorney if you need representation or advice.

You must register for the Hotline before you can call. Registration is free and quick. Go to www.VARealtor.com/legalhotline; you will need your NRDS ID number.

Who can use the Hotline?• You must be a principal or supervising broker.*• You must be a VAR member.• You must have registered for the Hotline

(see above).• You must have your NRDS ID number available

when you call.(* Each office can have one other person designated by the principal broker for Hotline access.)

E-mailing the HotlineYou can e-mail your questions to [email protected].• Responses will be by phone; we no longer

provide written answers to Hotline questions.• You must include your full name, phone

number, and NRDS ID. We cannot respond to messages that do not include all three.

• We will try to respond within 24 hours, but response time depends on Hotline activity.

Not a broker or member?If you aren’t eligible to use the Hotline, you can browse and search our Hotline archives at www.VARealtor.com/hotlinearchive and find more legal and risk management information in VAR’s Legal Resources Center at www. VARealtor.com/legalresources.

You will need your NRDS ID number to log into the site. Questions?If you have questions about the Hotline, contact VAR at (800) 755-8271 or (804) 264-5033, or by e-mail at [email protected]

The VAR Legal Hotline should not replace your own legal counsel. We will not answer questions on matters unrelated to real estate or real estate brokerage, nor can we help with pending arbitrations.

VAR Legal Hotline(804) 622-7955

NEW NUMBER!


lifelessonsAndREw KAnTOR

RealtoRs® who neglect Virginia real estate law can find themselves in the crosshairs of the Virginia Real Estate Board, facing punishment ranging from a small fine to loss of their license. They can be cited for small things or large, including, simply, “Unworthiness & Incompetence.”

Here are a few real-world examples taken from the recent actions of VREB. These narratives are based on the Board’s official findings and do not necessarily reflect reality; participants may disagree with VREB’s findings and version of events as well. They are provided solely as examples of Board actions.

All the names have been changed.

Fill in the blanksBob ran his own property management company. He had been working with a client for several months, trying to rent out a property but without luck.

His client was looking to purchase a home in Arlington, but in order to do so would need to show proof of income from the rental property. The client, upset, explained this to Bob in an e-mail.

Bob quickly responded: “If you only need to show something to the bank, I can send you a blank lease. They never check these things, so just fill it out with anything. It’s not as good as having a tenant, but if it’ll help you get the house then I’m willing to do it. People do it all the time.”

The client recognized that this was a Bad Idea, and contacted VREB. Bob admitted to making the offer, but said it was simply meant to calm his client so they could discuss a better game plan. The Board didn’t accept that.

Bob was fined $1,150, put on probation for two years, and required to complete eight hours of continuing education pertaining to broker management.

Here we go againLess than a year after paying his fine and being put on probation, Bob found himself in front of VREB again.

He managed a rental property for its owner, Lucy.

During an inspection in March, some of the tenant’s property was damaged. While Bob and Lucy discussed who should be responsible, the tenant sued. Lucy said she would appear in court, but didn’t; the tenant won a default judgement in the amount of $1,145 in June. Between March and June, the tenant had dutifully paid her rent of $950 per month.

Bob worked with the tenant and agreed to settle on Lucy’s behalf for $950. He refunded the June rent payment.

Lucy complained to the board that Bob had no right to do so. Bob responded that, according to the terms of the property management and exclusive rental agree-ment he had with Lucy, he had a first priority security interest in the rent payment. He believed it was his duty to use it to satisfy the court’s judgment.

The Board did not agree.

For failing to exercise ordinary care by refunding the rent payment without the permission of the landlord,

Repeat offenders

“Bob quickly responded: “If you only need

to show something to the bank, I can send

you a blank lease. They never check

these things, so just fill it out with

anything.

VOluME 17 ● ISSuE 5 SEPTEMBER/OCTOBER 2010

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Bob was fined $500 and had his license suspended for three months.

The Board, however, waived those penalties in exchange for Bob’s reporting to the Board quarterly and attending four hours of continuing education related to property management.

One more chance?Larry was a real estate agent; Sid was his broker. Larry was called before VREB for practicing real estate while his license was inactive. At that hearing, Sid appeared on Larry’s behalf, begging them not to revoke Larry’s license — Larry, it seems, was one of the firm’s top producers as well as a mentor to newer agents.

The Board agreed to put Larry on probation with Sid supervising him. Sid would report on Larry’s behavior quarterly for two years — in February, May, August, and November.

Sid filed his first report in February. Larry, he wrote, was doing fine.

But a couple of months later, in April, Sid received several e-mails from Victoria, who claimed to be a cli-ent of Larry’s. She said that Larry had cheated her out of $4,500. Sid asked Larry about them, and Larry said it was just a scam. Sid agreed that the messages looked suspicious.

But they were real, and Victoria filed a complaint with the Board. In June, the Board told Sid about the complaint and asked for more information. And in August the Board reminded Sid that he had not sent in his quarterly updates on Larry. Sid promptly sent those in; Larry was still complying with all the Board’s regulations. He did not mention the complaint.

The Board investigated it. In September, Larry admitted that yes, he had stolen Victoria’s money, forged her signature on loan documents, and doc-tored evidence he sent to the Board in response to the complaint.

Sid continued to plead on Larry’s behalf with the Board, saying (among other things) that Larry was overworked and was now getting help with his workload. In November he submitted his quarterly

report; Larry, he said, was still in compliance with all the Board’s regulations despite everything that had happened.

The Board didn’t agree. It revoked Larry’s real estate license. Then it turned its attention to Sid.

After considering the events, the Board fined Sid $7,500 for “failing to act as a real estate broker or salesperson in such a manner as to safeguard the inter-ests of the public.” It revoked his broker’s license and replaced it with a salesperson’s licence, and it ordered him to complete eight hours of continuing education on broker management and supervision. ●

Need a reason to volunteer your time?It’s simple, really: The more you learn, the more you’ll earn.

If you want to know more than your competitors, it’s simply not enough to read the news, blogs and (shameless plug) Commonwealth magazine — anyone can do that. You need to make bigger commitment: to dive deep into discussions with your peers and discover tomorrow’s issues before they become today’s issues.

And that’s why volunteering with VAR works for you. When you volunteer with VAR, you hear and talk about stuff that will affect your business — before the competition does.

Volunteer at the VAR booth (booth #215) or online at www.VARealtor.com/Volunteer

Volume 17 ● Issue 5 sePTemBeR/oCToBeR 2010

15

formfactorBlake Hegeman

Using the Equal Housing Opportunity logo

Forms — they’re the bread and butter of a deal. They’re full of fine print and legalese, and not everyone “gets” the details. and that often ends up as a call to our legal Hotline. (shameless plug: (804) 622-7955.)

so we asked our intrepid associate counsel (read: lawyer), Blake Hegeman, to take one of the forms the Hotline gets the most questions about and illuminate it for us.

They’re all available, free for download, at www.VARealtor.com/standardforms.

The Letter of the LawUse of equal housing opportunity logotype, statement, or slogan.

All advertising of residential real estate for sale, rent, or financing should contain an equal hous-ing opportunity logotype, statement, or slogan as a means of educating the home seeking public that the property is available to all persons regard-less of race, color, religion, sex, handicap, familial status, elderliness, or national origin.

The choice of logotype, statement, or slogan will depend on the type of media used (visual or auditory) and, in space advertising, on the size of the advertisement. From “Advertise Without Discriminating,” Virginia Department of Professional and Occupational Regulation

Need a reason to volunteer your time?It’s simple, really: The more you learn, the more you’ll earn.

If you want to know more than your competitors, it’s simply not enough to read the news, blogs and (shameless plug) Commonwealth magazine — anyone can do that. You need to make bigger commitment: to dive deep into discussions with your peers and discover tomorrow’s issues before they become today’s issues.

And that’s why volunteering with VAR works for you. When you volunteer with VAR, you hear and talk about stuff that will affect your business — before the competition does.

Volunteer at the VAR booth (booth #215) or online at www.VARealtor.com/Volunteer

I noticed that VAR forms contain the Equal Housing

Opportunity logo; do I have to include it on all

of my forms and advertisements?

no, you are not required by federal or state law to include the equal Housing opportunity logo on forms or advertisements — but you absolutely should!

The Virginia Fair Housing office provides helpful guidance about using the logo at the DPoR

website. It advises that “[T]he Fair Housing logo should appear in all

advertisements. using the logo creates a presumption that you’re trying to follow

the fair housing law.”It goes on to list fair housing policies

and practices that its investigators will consider as evidence of compliance with

the prohibitions against discrimination in advertising under the fair housing law. The

first factor listed is use of an equal Housing opportunity logo, statement, or slogan.

Please note that if you elect to use the logo, it must be used consistently; selective use could

be considered discriminatory. ●

H

87 4


Now see here...


17

Today, there’s a lot more to worry about — lead paint, Chinese drywall, wastewater, and a host of other stuff.

Virginia is a caveat emptor state — it’s up to the buyer to beware. There’s little sellers have to disclose.

The seller is required to provide a disclosure statement that in essence says, “Beware — and think about this list of items before you buy this house.”

Those “red flag disclosures” alert buyers to certain issues they might want to consider before buying a home. With a handful of exceptions (see the box, “See no, hear no, speak no”), it’s up to the buyers themselves to decide what bears investigation.

As-is is the phrase of the day.But let’s be clear: Under Virginia

law, you have no obligation as a real estate licensee to undertake any duties with respect to the items on the Residential Property Disclosure Form.

Virginia law only requires buy-ers’ agents to “[d]isclose to the buyer material facts related to the property or concerning the transaction of which the licensee has actual knowledge.”

Likewise, you have no duty under the Realtor® Code of Ethics to dis-cover anything about a property other than adverse factors reasonably apparent to someone with a real estate professional’s expertise. The Code

“does not impose upon the Realtor® the obligation of expertise in other professional or technical disciplines.” In other words, you’re a Realtor®, not an engineer.

But here’s the rub: The law also says that if you don’t have a duty, but you undertake it anyway and make a mistake in performance of that duty, you can be held liable for your mis-take — even though you had no legal obligation in the first place.

That means buyer’s agents have to be smart, careful, and observant when showing homes to clients and discuss-ing the inspecting process.

In short: Be careful in what you agree to do for your client.

You don’t have to inspect for asbes-tos, or the remains of a meth lab, or whether a property is in a dam break inundation zone. But you want your clients get the information they need to make an informed decision about the property they are considering buying.

So what if your client asks, “Is this mold?” or “Is the house in a resource protection area?” or “Do you think there’s an old oil tank buried here?”? Here are some resources you might want to point them to.

Once upon a time, all a real estate agent needed to tell her client was how far from the hunting grounds the cave was. Times change.

by Andrew Kantor

The Residential Property Disclosure Statement lists several environmental issues that potential homebuyers might be concerned with. But there are other issues that aren’t mentioned in the RPDS, yet a buyer might want to look into.

Specifically mentioned on the RPDS:

Dam break innundation zones

Meth lab operations

Stormwater detention facilities

Asbestos

wastewater systems

underground oil tanks

The Chesapeake Bay Preservation Act

limestone and karst

Historic districts

Chinese drywall

Sex offenders

Not listed on the RPDS:


Hire an expert. Meth

residue is something

you don’t want to

mess with.

Asbestos fibers are a known carcino-gen — right up there with cigarettes. It’s a fire retardant and a darned good one, which is why it’s installed in so many places. And properly installed it’s benign, but once it starts fraying or flaking, particles get into the air. If you breathe them in, you might be in for a world of hurt.

Realtor® Lorna Hall of MKB Realtors in Roanoke described losing a sale thanks to asbestos: “As part of the contract, the purchasers asked to have all asbestos removed,” she said. “We went to do our walkthrough and there were large bags of asbestos sitting in the middle of the rooms. The wife was pregnant and they flew out of that

house and refused to close on it.” Asbestos can look like cement,

“cotton-candy,” or wrap-around insu-lation. Unfortunately, to an untrained eye it can be difficult, if not impossible, to identify.

For information on how to find out whether the property has asbestos, you should suggest to your client that she call in a contractor who’s licensed to work with the stuff. She can also utilize the DPOR license-lookup site (VARbuzz.com/go/licenses). Put an asterisk (*) in the Name box, tick the box “Asbestos Individuals,” and hit “Search Licenses” to see a statewide list. (Add a ZIP Code for a local list.)

Some things, like a proper asbestos cleanup, require professionals and professional gear.

Once the chemical residue from a methamphetamine lab makes it into the walls, floors, and air ducts of a building, it ain’t coming out. That stuff is permanent. And living there could mean suffering from a list of health issues — breathing trouble, skin prob-lems, and migraines for starters.

If your client is interested in finding out whether the property has ever been used as a meth lab, you can suggest he check out the following: • DEA’s “National Clandestine

Laboratory Register” — a list of drug-lab seizures; Virginia’s page is at www.justice.gov/dea/seizures/va.pdf. It lists properties where a drug operation has been busted. But be warned: The list is far from com-prehensive. Just because a home isn’t listed doesn’t mean it wasn’t a lab.

• Contact the local police depart-ment to get information about the property.

• Have the property tested. A sim-ple do-it-yourself kit like SKC’s MethAlert kit (methwipe.com) is a start. It costs $99 for a dozen tests, and the results are available instantly. Inspection Perfection also offers a mail-in test (inspection-perfection.com). Two kits are $15, but they need to be mailed back in and your client will have to wait for the results. (Our lawyers want you to know that VAR is not suggesting or endorsing either company. They’re two whose names are mentioned on various Realtor® message boards and websites. Do your own research before recommending them — or anyone.)

• Hire an expert. Meth residue is something you don’t want to mess with. Your client can find an indus-trial hygienist through the Fairfax-based American Industrial Hygiene Association (aiha.org).

Asbestos

Meth lab operations


19

Septic systems can

be finicky. Too much

indigestible stuff

(coffee grounds, cat

litter, grease or oil)

can clog it.

Dam break inundation zoneHaving your home washed away in a flood can be annoying — and surprising. Just ask the folks around Lake Delhi, Iowa. Or look up “Johnstown Flood.” And many of Virginia’s dams are privately owned and unregulated.

The 2009 Dam Safety Act, though, requires dam owners to map inundation zones and file that information with the Virginia Department of Conservation and Recreation and local governments. But Robert Bennett, director for DCR’s dam safety and floodplain management division, said that of the more than 600 regis-tered dams in Virginia, only about 5 percent have had inundation zones mapped.

The rest will be added piecemeal, as those dam owners renew their permits. For information on how to find out whether the property would be affected by a dam, you can suggest that your client contact the appropriate local government agency or the Virginia Department of Conservation and Recreation.

Stormwater detention facilities

Many properties in urban or suburban areas have some kind of stormwater management system, whether it’s a large and complex detention/retention facility, or simply a ditch that carries runoff away.

A buyer may want to know what it is and who’s responsible for it. If it’s a large facility managed by the city or county, no worries. But if individual homeowners are responsible, your client will want to know exactly what that means. Is it just a matter of keep-ing a particular ditch clear of debris, or is there a detention pond that will need maintenance? Is the property part of a homeowners association that will collect a hefty fee every few years to maintain it?

The regulations vary from local-ity to locality, and development to development.

To find out how the stormwater is controlled on the property, suggest your client contact the local govern-ment office (county, city, or town) in charge of stormwater regulations, and find out how the property’s runoff is handled and who’s responsible.

Wastewater systemMany properties are not con-

nected to “city water,” which means wastewater goes to an on onsite sew-age system. And those systems are subject to regulations and may well require maintenance.

Septic systems can be finicky. Too much indigestible stuff (coffee grounds, cat litter, grease or oil) can clog it. They need to be pumped out (eew!) every three to five years. And pipes leading to and from the septic tank can get crushed if an old owner drove over the septic field.

While most real estate contracts in Virginia require the seller to certify that the septic system and pump are in working order and compliant with the law, your client may choose to have it checked for any problems beforehand, if only to understand what kind of maintenance is required.

For the details on a property’s septic system (or alternative onsite sewage system), you can suggest your client call in a dedicated septic system expert — DPOR calls them “onsite sewage system professionals” — and they can be found on the DPOR license-lookup site (see “Asbestos” above).

The yellow dots are homes. The blue is the dam innun-dation zone. won’t your clients want to know that?


Oil tanks corrode over time. After a decade or two, many of them can begin to leak. Leaking oil can contami-nate the groundwater and make its way to nearby streams.

The EPA warns of the potential for contaminating groundwater and, worse, drinking water. A seeping tank, it says, “can present other health and environmental risks, including the potential for fire and explosion.” The Virginia Department of Environmental Quality considers the owner of the property at the time a leak is reported to be responsible for any leaks.

Realtor® Dickie Roe of Long & Foster in Roanoke often handles listings in one of the city’s wealthiest neighborhoods. He once helped negoti-ate the sale of a fine home on a presti-gious avenue. At some point, after the new owners had lived in the home for a time, they decided to install a sump pump in the basement. Eventually, Roe said, “A little trace of oil, just barely noticeable, was visible in the water.”

The culprit was a previously unde-tected underground heating oil tank. “It had probably been there since the 1930s. I’m sure nobody knew about it,” he said. “The house had long ago been converted to natural gas heat.”

Total cost to remove the old tank: about $50,000. Luckily the Virginia Petroleum Storage Tank Fund — funded by a sixth-tenths-of-a-cent tax on fuel — paid all but $500.

There are two ways to test the integrity of an underground storage tank: test the soil around the tank, and pressure-test the tank itself. Neither is a big deal. The DEQ, in fact, has a list of in-state contractors who can do tank testing at www.deq.state.va.us/tanks. (Your client should click

“Contractors & Consultants.”)The big deal is if they find the tank

is leaking. In that case, the tank either must be removed or drained and filled by a firm specializing in that sort of thing. In most cases the Storage Tank Fund will pick up the tab, but that’s not guaranteed.

And remember, older buildings that have gas heat now probably didn’t always. When considering one, Jeff Shawver, a building commissioner in Roanoke, suggests having a potential buyer look around the house and in the basement for any pipes or fill caps that go nowhere. (Of course, he can simply ask the seller, “Where was the fuel tank?”)

If the building was converted from oil to gas, your client may also want to ask about the permit for replacing the furnace. If an underground storage tank is taken out of service, a permit will indicate whether it was properly removed or filled in place.

For information on underground storage tanks, you might suggest that your client contact one of the list of in-state contractors maintained by DEQ who can do tank testing at www.deq.state.va.us/tanks. (Click “Contractors & Consultants.”)

Underground oil tanks

A seeping tank, says

the EPA, can pres-

ent other health and

environmental risks,

including the potential

for fire and explosion.

After a decade or two, underground oil tanks can rust — and sometimes leak.


21

What the lawyers adviseThe purpose of this article is to give you resources you can in turn give to your buyer clients. But, remember, you do not have a duty under Virginia law to do these things for your buyer client. VAR advises you that you should provide the resource information to your buyer client, and let your buyer client make the inquiries into these various matters. The Residential Property Disclosure Statement is a “red flag” disclosure to the buyer from the seller and is substantially different from the old “Disclaimer Statement” that was prevalent in residential real estate transac-tions until VAR asked the General Assembly to change a law a few years ago.

Under a “Disclaimer Statement”, the seller was not responsible to the buyer for “latent defects”; which are defects in the property that the seller knew about but did not disclose. One of the difficulties of the old law was that while the seller could hide “latent defects” from the buyer and incur no liability, the seller’s agent was responsible for “material facts” about a prop-erty, as well as “latent defects” — something that affects its physical structure, physical environment, or any improvements made to it – and was required to disclose them. With the new “Disclosure Statement” however, now the seller is liable to the buyer for disclosure of “latent defects,” which aligns the seller’s responsibilities with the seller agent responsibilities. —per VAR attorneys Chip Dicks, Jay DeBoer, and Blake Hegeman

Limestone and KarstSome parts of the state — notably Loudoun and Clarke counties and parts of the New River Valley — are composed of limestone. It’s a porous rock that is eaten away by rainwater. That results in several things: giant caverns (think Luray), sinkholes, and rock fissures.

Sinkholes sound dangerous, but, as Christine Windle, director of governmental affairs & communica-tions for the Dulles Area Association of Realtors® pointed out, “Not one structure [in Loudoun County] has ever fallen into a sinkhole.” Fissures are more subtle. They can allow waste-water and runoff on the surface to go directly into the water table, rather than slowly permeate through the soil where natural processes help clean it.

Although there isn’t any evidence of water contamination, Loudoun County officials have designated about 14,000 acres as a “limestone overlay district” where growth is restricted … just in case.

Within that LOD, anyone plan-ning to do any serious digging (for a swimming pool, say) requires a geo-physical study to be done to check for sinkholes, and to limit development

to prevent contamination of the water supply. There are other rules as well, such as requiring all new development to have communal water and sewage systems, not individual wells or septic fields.

For information on whether the property is within the LOD, suggest that your client contact Loudoun County and to learn current develop-ment restrictions. The county has a Web page devoted to it, including a map, at loudoun.gov/limestone. Even more detail is available at the Loudoun County Geographic Information Service (www.loudoun.gov/weblogis). Choose “Environmental” from the drop-down list of Layer Groups, check the box next to “Limestone OD,” and click “Apply.” (The GIS is a fount of information about proper-ties. Your client can play around with the various layers.)

Oh, and note that there is a lawsuit pending by a Loudoun real estate broker that hopes to stop the county from creating the LOD. That suit probably won’t be resolved until at least 2011, however.

The danger of overbuilding on limestone isn’t so much sinkholes as it is groundwater contamination.


No one with kids wants to live near a sex offender, registered or not.

A sex offender doesn’t necessarily mean someone violent; the spectrum runs from the seemingly benign (middle schooler guilty of “sexting”) to potentially violent parolees. But not everyone is going to make the distinc-tion; a sex offender next door is a likely turnoff to a buyer, now or in the future.

For information on local sex offend-ers, you should suggest your client visit the Virginia Sex Offender Registry at sex-offender.vsp.virginia.gov.

Users enter a ZIP Code or choose a county or city; they’ll see where all the local sex offenders live or work, including details of the offenders and the crimes they committed. Your client can decide whether or how much he’s concerned.

There are more sex offend-ers out there than you think, as this map of Southwest Roanoke shows.

The 1988 Chesapeake Bay Preservation Act limits develop-ment on property that can affect the Chesapeake Bay — the idea is to reverse the damage already done to the bay, and to prevent any more from occurring.

The 84 localities covered by the Bay Act (see the map, left) have (or soon will have) restrictions based on the Act’s guidelines.

Part of that means designating certain areas as resource protection areas and others as resource manage-ment areas.

Properties in either resource protec-tion areas or resource management areas have significant limits on the kind and amount of development that can occur on them.

RPAs (which are typically near water — shorelines, wetlands, streams, and so on) are “no disturbance” areas. The only things you can build in an RPA are water-related structures like marinas and piers.

RMAs allow limited development, with regulations covering the amount of ground that’s paved over, reducing runoff, getting wetlands permits before

land is cleared, and making sure any new development has an adequate drainfield for its septic system.

If you have a buyer interested in land in any of the Bay Act coun-ties — as well as Loudoun, which is considering regulations that mirror the Act — she’ll want to know if that land is either an RPA or RMA.

Will the Bay Act limit what your client may want to do with the prop-erty? Suggest that she contact the local government and ask whether it’s covered by the Bay Act, and, if it is, whether it’s in a resource protection area or a resource management area. If so, make sure she is absolutely clear on any development restrictions prior to closing on the property.

(To get yourself up to speed on the Bay Act, check out the Accomack-Northampton Planning District Commission’s handbook at VARbuzz.com/go/bayact or call (800) CHESBAY. Loudoun County’ s government also has a Web page devoted to the Bay Act, including links to a map of what’s covered: Loudoun.gov/chesapeakebay.)

localities covered by the Bay Act

localities not covered by the Bay Act

Sexual offenders

The Chesapeake Bay Preservation Act

VAR attorneys Chip Dicks, Jay DeBoer, and Blake Hegeman contributed to this story.


23

Roanoker Aubrey Hicks’s tin roof was leaking. He began to replace it with traditional shingles. But, because his home was in the city’s Old Southwest historic district, Hicks was forced to stop work. He needed approval from the city’s Architectural Review Board, which denied it.

So for 10 months, Hicks’s roof remained half finished while he battled the ARB in court. Finally a judge ordered the city to issue the permit, calling its actions “arbitrary and capricious.”

If a property is in a local historic district, there could be strict limits on

any changes or repairs — from the type of roof to the color of the door to the kind of windows. And remember, even a modern structure can be within a historic district.

For information on local historic districts, suggest your client contact the local government. For information on individual buildings, the Virginia Department of Historic Resources maintains a list of properties that are considered to have historic value. It’s not the easiest site to use, but it should take your client but a few minutes to determine if a property is on the list. Visit VARbuzz.com/go/historic.

Chinese drywallStarting around 2008, some homeowners in new construction began to

complain about foul odors, damaged appliances and wiring, and other problems — the source of which turned out to be drywall imported from China.

Gases emitted from bad drywall not only made the homes uninhabitable because of the smell, it damaged plumbing, wiring, and air conditioners and other appliances; some homeowners reported respiratory problems.

In Virginia, the Tidewater region was most affected by the defective drywall, although Marcia Meredith, a Virginia Department of Health spokeswoman, said there were also “isolated reports of homes built with Chinese drywall in Richmond, Williamsburg, and Loudoun County.” (Some of the homeowners, it turned out, were mistaken; their drywall tested fine.)

Unfortunately, there’s no quick and simple test for bad drywall. A proper test takes two weeks to four weeks to complete. But there will likely be some signs.

First is the smell — the stench of rotten eggs. The client or home inspector can also look for tarnished copper or silver, such as the coolant tubes on the back of an air conditioner, copper pipes under a sink, or the grounding plug (the “third prong”) on appliances. Bad drywall will often cause a black, pow-dery residue to form.

Consider these three conditions: Built or remodeled between 2001 and 2008, smells of rotten eggs, tarnished copper or silver. Alone, none is necessarily an issue. But if two are true there may be a problem. Fortunately, relatively few houses in Virginia have been affected by Chinese drywall.

What should you suggest if your client is considering one of those few? Find another house. (Seriously. There’s no way to fix the problem other than replac-ing all the drywall in the house — and potentially parts of the plumbing and electrical systems as well.) ●

What’s VAR doing?VAR is working with the governor and the General Assembly, led by Delegate Glenn Oder (R-Newport News), to develop legislation to address the Chinese drywall problem by creating a disclosure for homes identified to have it, but not to burden all of the residential real estate transac-tions in Virginia with unnecessary paperwork. Stay tuned as this measure moves forward in the 2011 General Assembly session.

Historic district

“


When less is moreTechnology can make so many things faster and easier, it’s worth taking the time to remember that the low-tech approach is often better.

In fact, because so many people are using techno-logical solutions, going non-tech can make you stand out in a good way. A very good way.

Case in point: While working for a consumer magazine, I wanted to get our new Web site featured in USA Today, which at the time promoted a Site of the Day. Rather than e-mail the editor of the section, I sent him a handwritten note in a hand-addressed envelope. (I wasn’t coy. I explained my logic in the note — that I was sure he would open it.)

He did, and we were featured in the paper two days later.

Doing the thing that other people aren’t doing — that’s smart. Yes, it takes an extra effort, but that’s the point. People realize that.

Give yourself a handYes, e-mail is fast and wonderful and we all do it. In many cases it’s the best tool in the box. But not always.

Which strikes you as more genuine and professional: the job applicant who e-mails a thank-you note, or one who sends something handwritten? (We won’t even talk about someone who texts or tweets it.)

The answer is obvious. When speed isn’t crucial, paper works — usually better. You wouldn’t send a condolence by e-mail, would you?

Use e-mail (or texting) when it makes sense. But when the rush is over and you’re sending a thank-you or other pleasantry, go with paper, envelope, stamp.

In fact, if you really want to make an impression, hand write your note. So few people take the time to put pen to paper these days, it’ll be a pleasant surprise and a solid connection. You can get some beautiful blank notecards in lots of places, or get some custom made with your name or logo — check out stores like PaperDirect (paperdirect.com) and Zazzle (zazzle.com).

Zazzle, in fact, will let you create custom US postage stamps. How’s that for personalization?

Finally, even if you opt to type and print a letter,

make sure to sign it. In ink. By hand. Don’t leave the line above your name blank (!), and don’t use some generic script font and think it looks like a signature. Get out a pen.

Your paper, pleaseThink about this: A) You get an L.L. Bean catalog in the mail. B) You remember that L.L. Bean has an online store. Which do you think you’re more likely to browse though — that print catalog in your hand or the website? Dollars to doughnuts you at least flip through the catalog.

Print works. It works very well. It takes no effort to browse a piece of paper in your hands. Print is easier to read than to discard; e-mail is the opposite.

So if you keep in touch with your clients even after closing (and you do, don’t you?), do it with paper … at least occasionally.

Print takes

less effort to

read and more

to discard;

e-mail is the

opposite.”

Postcard mathA postcard costs 28 cents to mail. At Zazzle you get design your own — front and back — and get 100 of them for $70 including shipping. Total cost to send them to 100 clients: $98. Do it quarterly and it’ll cost you about $400 a year.

But if you close single extra deal because of it, you’ll have earned it back in spades.

accessibletechANDREw KANTOR

“

accessibletech


We’re in an era of astounding technological change — it’s easier than ever to get lots of information to lots of people in a fraction of a second. But before you turn to any of this wonderful technology to save some time or trouble, think about the benefits of not using it. You might find they’re greater than you expect. l

E-mail certainly has its place; mass and automated mailings are useful tools, for sure. But so is the occa-sional just-keeping-in-touch message. On paper.

Here’s another suggestion: Make it even easier on your clients. Don’t use an envelope. A postcard doesn’t need to be opened; it’s going to be read. It’s a perfect way to keep your name in your clients’ collective consciousness. Even a glanced-at postcard will do more than a deleted e-mail.

(Content, of course, is a whole other issue. If you don’t tell people anything interesting, they’ll learn not to open stuff from you.)

Crystal clearHere’s a tip you may not want to hear — or one that may surprise you. We all know that Realtors® and cell phones go together like, um, Realtors® and cell phones. But if you can use a landline instead, do it.

Cell technology is great, but let’s face it — it’s still not up to the quality of a landline. Ma Bell’s com-mercials never asked, “Can you hear me now?”

Even without drop-outs and delays, a cell call from your car or the street is going to be noisy, while a call from your desk or home will (hopefully) be quieter and relaxed. Besides, you never know when the other person is thinking, “Why are you on your phone while you’re driving?”

Of course there are situations where you need to talk to someone right now. And you’ll have those clients who expect their calls to be returned in two minutes, not 20. So use your judgment. But if you can wait a bit to get to a quiet place and a landline phone, do it.

These are all subtle things: A message on paper, a handwritten signature, a clearer and quieter phone call. But they’re noticed and they add up. They convey sincerity and professionalism more than anything sent with bits and pixels can.

Speaking of paperIf you handle relos, the single best thing you can give a client is a high-quality printed street map. Folded ones are fine, but a book is better.

Political powerwe occasionally ask you to contact your local, state, or federal representatives to support or oppose some legal action. Here’s a tip if you don’t want to call: Fax them.

E-mail is so easy that everyone uses it. It’s not even a dime a dozen. But a fax will stand out. (Of course, a short, snail-mail note will stand out even more, but one step at a time.)

Back in the mid-’80s, I worked for a state senator in New York. He told me how he values messages: A photocopied letter represented the opinion of five constituents. A fax or printed letter counted for 10. Handwritten meant 20 people agree. And a phone call counts for 50. (One of my jobs was to do the math to get a feel for what his constituents wanted.)

Keep it in mind.

Before you turn to technology to save

some time or trouble, think about the

benefits of not using it.”


As of August 27, 2010 the follow-ing REALTORS® and local associa-tions have joined RPAC of Virginia as Major Investors. For more information on the value of RPAC and how your investment works to protect your business, contact Meredith Cox at [email protected] or (804) 264-5033. Or, if you want to get invested today, please visit rpacofva.com.

STERlING R INVESTORS ($1,000–$2,499)

Charles Burnette Burnette Real Estate SalesBlacksburg

Joe FunkhouserColdwell Banker

FunkhouserHarrisonburg

Tom Stevens*Coldwell Banker

ResidentialVienna

Billy Chorey Sr.* Chorey &

Associates RealtySuffolk

Dorcas Helfant-Browning Coldwell Banker

ProfessionalVirginia Beach

Melanie Thompson*Century 21

AdVenture RealtyFredericksburg

Dennis Cronk* Poe & Cronk Real

Estate GroupRoanoke

Steve HooverMKB, REALTORS®

Roanoke

Jack Torza*Long & Foster

Realtors®

Mechanicsville

John Dickinson Hall Associates, Inc.

Union Hall

John McEnearneyMcEnearney

Associates, Inc.Alexandria

Thomas Jefferson, III*Joyner Fine Properties

Richmond

Mike MinneryRe/Max Allegiance

Woodbridge

Bob AdamsonMcEnearney

Associates, Inc.McLean

Guy AllenOne Stop Realty

Woodbridge

GOlDEN R ASSOCIATION ($5,000) CRYSTAl R ($2,500–$4,999)

Dulles Area Association of Realtors®, Leesburg

Fredericksburg Area Association of Realtors®, Fredericksburg

Northern Virginia Association ofREAlTORS®, Fairfax

Richmond Association of Realtors®, Richmond

Roanoke Valley Area Association ofREAlTORS®, Roanoke

williamsburg Area Association ofREAlTORS®, Williamsburg

GOlDEN R INVESTORS ($5,000)

* Hall of Famers have contributed a cumulative amount of at least $25,000 to RPAC.

Re/Max AllegianceAlexandria

John PowellLong & Foster Real

Estate, Inc.Colonial Heights

Jane Quill RE/MAx Presidential

Fairfax

rpacreport


29

Julia AventRe/Max Allegiance

Arlington


Mary Ann BendinelliWeichert Realtors®

Manassas

Laura BenjaminRoanoke Valley

Association of Realtors®

Roanoke

Karen Bohlke-EnriquezRe/Max Select

Hampton

Brad BolandJobin Realty

Reston

Billy CoonsRealty Executives

Virginia Beach

Benton DownerDowner & Associates

Charlottesville

Kevin BreenColdwell Banker Elite

Fredericksburg

Curtis BurchettMKB, Realtors®

Roanoke

Pat ClarkLong & Foster Roanoke South

Roanoke

Vic CoffeyRe/Max

All Stars RealtyDaleville

Patrick CowneLong & Foster

Real Estate, Inc.Manassas

Candice BowerMcEnearney

Associates, Inc.McLean

R. Scott BrunnerVirginia Association

of Realtors®

Glen Allen

Robyn BurdettRe/Max Allegiance

Reston

Chris CallAREAS

Appraisers, Inc.Springfield

Dale ChandlerGreg Garrett Realty

Newport News

David CharronMRIS

Rockville, MD

Deborah BaisdenPrudential Towne

RealtyVirginia Beach

C.C. Bartholomew Long & Foster Real Estate, Inc.

Manassas

Bob BartonBarton Real

Estate ServicesRichmond

Mary BayatBayat Realty Inc

Alexandria

Lee BeaverKeller Williams Realty

Manassas

Gail BeltKeller Williams Realty

McLean



Donn IrbyRose & Womble

RealtyChesapeake

Margaret IrelandWeichert

REALTORS®

Gainsville

Jo Anne JohnsonWestgate Realty

Group, Inc.Falls Church

Sita KapurArlington Premier

Realty LLCArlington

Kathleen KennedyRe/Max Regency

Manassas

Patricia KlineAvery Hess Realtors®

Springfield

Barbara Jean LeFonRivah Realty LLC

Montross

Lynn GrimsleyRE/MAx Peninsula

Newport News

Charlee GowinPrudential Towne


Arthur GraceHunzeker & Lyon, PC

Manassas

David HessAvery Hess Realtors®

Dunn Loring

Betty Jasmund Coldwell Banker Elite

Stafford

Kit HaleMKB, REALTORS®

Roanoke

Margaret HandleyM.C. Handley, Ltd.

McLean

Tom InnesRE/MAx

CommonwealthRichmond

Lizzie HernandezRE/MAx Regency

Manassas

Mary DykstraRE/MAx Valley

REALTORS®

Roanoke

Sandee FerebeePrudential Towne


Karen GaskinsRose & Womble

RealtyChesapeake

Libby GatewoodNapier

REALTORS® ERAColonial Heights

Bill GearhartColdwell Banker

TownsideRoanoke

Claire Forcier-RoweColdwell Banker Elite

Fredericksburg

Virgil FrizzellLong & Foster

Real EstateHerndon

Pam FrohmanKeller Williams Realty

Chesapeake

Contributions are not deductible for income tax purposes. Contributions to RPAC are voluntary and are used for political purposes. The amount suggested is merely a guideline and you may contribute more or less than the suggested amount. You may refuse to contribute without reprisal and the National Association of ReALToRS® or any of its state associations or local boards will not favor or disfavor any member because of the amount contributed. 70% of each contribution is used by your state PAC to support state and local political candidates. Until your state PAC reaches its RPAC goal 30% is sent to National RPAC to support federal candidates and is charged against your limits.

rpacreport


31

Richard LimrothRE/MAx Valley

REALTORS®

Roanoke

George LyonsLong & Foster

Real EstateWoodbridge

Glenda McDanielLong & Foster

Hales FordMoneta

David MichalskiFairfax Realty, Inc.

Annandale

Lee OdemsBuyer’s Advantage

Real EstateWoodbridge

Percy MontagueMontague, Miller

& Co.Charlottesville

Vicki NellisRe/Max Allegiance

Burke

Scott MacDonaldRe/Max Gateway

Chantilly

Andy MasonWeichert Realtors®

Mason-Davisonancock

Shane McCullarKeller Williams Realty

Alexandria

Susan MekenneyRE/MAx Allegiance

Fairfax

Dee MeredithColdwell Banker

Forehand & CompanyLynchburg

Tom MeyerCondo 1, Inc.

Arlington

John MeyerRe/Max Allegiance

Alexandria

Jay MitchellPrudential Towne


Vinh NguyenWestgate Realty

Group, Inc.Falls Church

Boofie O’GormanLong & Foster

Real EstateReston

Forrest Odend’halLong & Foster

Real EstateManassas

Susan OhNew Star Realty

& InvestmentMcLean

Ann PalmateerPrudential Towne

RealtyChesapeake

Gwen Pangle1757 Real Estate Company LLC

Leesburg

Gail PenmanWilliam E. Wood

& AssociatesVirginia Beach


STERlING R ASSOCIATION ($1,000–$2,499)

Greater Augusta Association ofRealtors®, Staunton

lynchburg Association of Realtors®,Lynchburg

New River Valley Association of Realtors®, Christiansburg

Southside Virginia Association ofRealtors®, Colonial Heights

Virginia Peninsula Association of Realtors®, Hampton

Harrisonburg-Rockingham Associationof Realtors®, Harrisonburg



Karen TrainorWeichert

REALTORS®

Fairfax

Kevin TurnerCentury 21 All Service

Bedford

Sandra WagnerWilliam E. Wood

& AssociatesPoquoson

Todd WamplerWampler Realty, Inc.

Daleville

Barbara WolcottPrudential

Towne RealtyVirginia Beach

Thomas “Mack” Strickland, Jr.

Strickland RealtyChester

Crystal SullivanRe/Max Peninsula

Newport News

Trish SzegoERA - Elite Group

Realtors®

Fairfax

Richard “Dick” Thurmond

William E. Wood & Associates

Virginia Beach

Christine ToddNorthern Virginia

Association of Realtors®

Fairfax

Mary Ann WhiteHometown Realty

Prince George

William A. WhiteJoyner Fine Properties

Richmond

Jon WolfordLong & Foster

Real EstateSpringfield

Tony YehUnited Realty, Inc.

Vienna

Suzy StoneCentury 21

AdVenture RealtyFredericksburg

Anne RectorLong & Foster

Real EstateAlexandria

Peter Rickert Coldwell Banker

Residential BrokerageAlexandria

Thomas Rickert Coldwell Banker

Residential BrokerageAlexandria

Tracy PlessLong & Foster

Real EstateReston

Joe SutliffRe/Max

All Stars RealtyDaleville

Lonnie PlasterLong & Foster

Real Estate, Inc.Manassas

Zinta Rodgers-RickertRe/Max Allegiance

Fairfax

Henry ScholzHall Associates Inc.

Roanoke

Trudy SeveraLong & Foster

Real EstateReston

Jean SiebertSiebert RealtyVirginia Beach

Kimber SmithPrudential

Towne RealtyToano

Cindy StackhouseCentury 21 Stackhouse

& AssociatesDumfries

Wes StearnsMO Wilson

Properties Inc.Woodbridge

rpacreport


33

Who and where Not sure exactly where “VA 09” is, or who represents your district? Head over to VARbuzz.com/go/reps for a map and guide.

During every congressional race, Virginia’s RPAC trustees review the positions and voting records of the candidates — whether incumbents or challengers — to gauge their support of Realtors®.

Their one consideration: the candidates’ voting record on real estate and property issues. (You may have other reasons to support one candidate over another, but RPAC is only interested in how the candidates stand on the issues that impact your business.)

Realtors® are an influential and effective lobbying group because we conscientiously support elected officials who support our legislation.

while challengers to Realtor®-endorsed candidates may also back some of our issues, in order to remain effective, our friends must know that we will be behind them for the long haul.

Virginia’s RPAC doesn’t fund candidates for Congress directly. The Virginia RPAC Trustees make recommendations to NAR’s RPAC Trustees, who in turn make the final decisions.

For the 2010 general election, here are the congressional can-didates Virginia RPAC has chosen to support and the (very basic) rationale behind each decision.

Rep. Robert Wittman (R-VA 01)Congressman wittman has supported more than two-thirds of the Realtor® legislation in the current congressional cycle (the best record of all Virginia Republican congress-men). He also cosponsored the moratorium on the implementation of Home Valuation Code of Conduct and voted to extend the homebuyer tax credit.

Rep. Glenn Nye (D-VA 02)Rep. Nye supported more than 90% of Realtor® bills this session including the extension of the homebuyer tax credit.

Rep. Bobby Scott (D-VA 03)Congressman Scott has been supportive of the Realtor® community, and goes out of his way to work with our members; he has sup-ported most NAR legislative positions and serves on the House Judiciary Committee where he plays a key role in issues of private property rights and fair housing.

Rep. Eric Cantor (R-VA 07)As minority whip, Rep. Cantor is in a strong posi-tion to support Realtors® in Congress. He has made himself very accessible to Realtors® on the local and national levels, and shows a keen interest in and under-standing of our issues.

Rep. James Moran (D-VA 08)Congressman Moran has been a strong supporter of Realtor® issues, cosponsor-ing bills to ban banks from entering the real estate sec-tor, establishing a Housing Trust Fund, and modern-izing the Federal Housing Authority, among others. He consistently has an above average voting record on Realtor® issues.

Rep. Rick Boucher (D-VA 09)Rep. Boucher has been solid supporter of NAR legisla-tion. Among other things, he cosponsored bills on bankruptcy reform, limiting the span of industrial loan companies, implement-ing the moratorium on implementation of the HVCC, and extending the homebuyer tax credit. He also holds a key position on the Energy & Commerce Committee.

Rep. Frank Wolf (R-VA 10)A strong supporter of NAR and VAR issues, Congressman wolf is “always a champion for Realtor® causes” such as the ban on banks in real estate and the Affordable Housing Tax Credit. He worked to delay implementing new RESPA rules, and to get the government to stimulate the commercial real estate market as well.

Rep. Gerry Connolly (D-VA 11)Rep. Connolly has supported 100% of Realtor®-backed legisla-tion in the current session, including the homebuyer tax credit; he also asked for more Fed involvement to limit damage from the commercial real estate crisis.

RPAC endorses congressional candidates

Rep. Randy Forbes (R-VA 04)Rep. Forbes has shown himself to be a solid sup-porter on Realtor® issues such as the Affordable Housing Tax Credit and HVCC moratorium. like Rep. Scott (above), he serves on the influential House Judiciary Committee.

Rep. Bob Goodlatte (R-VA 06)A strong supporter on Realtor® issues, Congressman Goodlatte has cosponsored bills to ban banks from entering the real estate sector and to extend the homebuyer tax credit.

rpacendorses

Here’s your chance to win a cool Creative Vado HD camcorder just for reading this magazine and visiting VARbuzz, VAR’s

official blog.It works like this: Answer the questions below by reading this issue of Commonwealth. On October

11, go to www.VARbuzz.com. There you’ll read simple instructions (e.g., “Take the first letter of each

word to spell out the answer” or “What’s the opposite of answer #3?”). That will give you the final answer and instructions for sending it in.

There will be a deadline. We’ll take all the correct entries we receive by that deadline and draw one ran-domly. That winner gets the Vado. Simple, huh?

Notes: This contest is only open to current members of the Virginia Association of Realtors®. Contest winners must skip two issues before they’re eligible to win again. All deci-sions about correct answers rest with VAR staff, and are final. Bribes are accepted but not acted upon.

This issue’s questions:1. What three-letter agency runs the National

Clandestine Laboratory Register?

2. What’s the three-letter acronym that describes about 14,000 acres of Loudoun County?

3. What three-letter language-services company offers a discount to VAR members for translating docu-ments or phone calls?

4. NAR is now offering a new financial service for Realtors®. What are its three initials (i.e., the part after “Realtor”)?

5. What mortgage servicer did HousingWire say has the quickest turnaround time for short-sale transactions?

SEPTEMBER/OCTOBER 2010 WWW.VAREALTOR.COM34

varbuzzcontest

Volume 17 ● Issue 5 sePTemBeR/oCToBeR 2010

35

We’re online at www.VARealtor.comour official blog is VARbuzz, at www.VARbuzz.com

If you have questions, we’re ready to help. During normal business days, our receptionist is available from 9:30 a.m. to 3:45 p.m.

For membership and dues questionsAsk for Amy Hafermembership Records manager [email protected]

If you’d like to have someonespeak at your association or brokerageAsk for lisa Noon, Vice President of member outreach [email protected]

To find out about conferences, seminars, and professional educationAsk for Glenda Puryear, Conferences specialist or lili Paulk, Director of education glenda or lili @varealtor.com

For questions about professional standards and the Code of Ethics Ask for Blake Hegeman,Associate [email protected]

If you need to know about professional designationsAsk for Kim martin, specialties and Chapter manager [email protected]

For information about RPACAsk for meredith Cox, Director of Political Communications [email protected]

If you’re interested in marketing or advertising opportunitiesAsk for Amanda Rainsford, marketing manager [email protected]

If you have comments or questions about Commonwealth magazine or our Web sites Ask for Andrew Kantor, editor & Information manager [email protected]

To reach our Legal Hotline Call (804) 622-7955*

* You must register first at www.varealtor.com/LegalHotline

Our CEO is Scott Brunner(804) 249-5712 [email protected]

DNCSolution, Do-not-call solutionssecurity code sC1795VR

Liberty MutualHome, auto, and renters insurance

LLE Language ServicesTelephone interpretation and document translationPromotion code VARm08

Outstaffing, staffing and payroll

Pearl Insurancee&o, medical, life, and dental insurance

Phone Tag, Voice to e-mail transcription

Realtors Federal Credit Union

TASC/BizPlan, medical expense tax benefits

T-Mobile, Wireless service

UPS

VAR Wireless CenterWireless plans and hardware

Virginia Department of Motor Vehicles Realtor license plates

Zipform, electronic Forms solutions

Cindy Stackhouse, GRI President Century 21 stackhouse and AssociatesPrince William(703) 580-0880 [email protected]

John Dickinson, CCIM, GRI President-electHall Associates, Inc., Roanoke(540) 982-0011 [email protected]

Trish Szego, CRB, CRS Vice PresidenteRA-elite Group, Haymarket(703) 359-7800 [email protected]

John Daly, SFR Treasurer Rose & Womble, Virginia Beach (757) 486-8800 [email protected]

John Powell, GRI, ABR, CRB, CRSImmediate Past Presidentlong and Foster Real estate, Colonial Heights(804) [email protected]

R. Scott Brunner, CAEChief executive officer (804) 264-5033 [email protected]

VAR Member Service Partners

VAR 2010 Leadership Team

(804) 264 -5033our phone number is

contactvarWe’D loVe To HeAR FRom You


Don’t wear a brown belt with black shoes. And vice versa. • How to add and subtract in your head. • Take off your ballcap

indoors. • Don’t show your boxer shorts in public. • Penmanship. • When

talking on a cell phone in a public place (an airplane, say), be quick and quiet about it. • There are (at least) two sides

to every story, and you may not be entitled to know both. • Subject/verb agreement. • Handwritten thank you

notes. An e-mail just isn’t the same. • Look people in the eye, especially those in positions of authority. •

How to make change and count it back. • The American Dream is not something the government owes you. It’s something you earn

through hard work, patience and sacrifice. • Not to stop and gawk and scratch your backside in the middle

of the airport concourse (other places, too) when there are people walking behind you. • Praise in

public, be critical in private. • Your kids are more important than your work. • You are almost never the exception to

the rule. • Discretion. • Tip the waitress. She has a tough job. • The straps of your

undergarments should be covered by your outer garments. • The proper use of quotation marks. They’re not merely an alterna-

tive to underlining. • If the car beside you lets you merge, acknowledge it with a wave. • When you’re

at a meal with others, turn your phone off and put it away. Ditto at committee meetings and church. • Just because you heard it on TV doesn’t make it true. • To feel genuine shame when the situation calls for it. •

Reading broadens your perspective. • Funerals are occasions that demand dignity. Wear a tie, for goodness’ sake. • If some-

one needs a seat more than you do, give them yours. • Don’t chew gum in social settings. • The inherent risk in

being a self-made man is that you may get the head too big. • Don’t complain to someone who can’t do anything about what you’re complaining about. • How to make introduc-tions. • Perception is reality. • Flush. Please. • Excess almost always comes with consequences. • In a social

or business setting, make others feel comfortable before you feel comfortable. • Stand to the right on an escalator. • The difference between needs and wants. • Think for yourself. • Treat other people kindly and cour-

teously, not necessarily because they deserve it, but because you want to be the kind of person who treats other people kindly and

courteously. • Respect — and seek to understand before you disparage — other folks’ opinions, especially where faith or politics

are concerned. • Old people are not disposable. They’re worthy of

respect. And they have some great stories to tell. • Children hear —

and see — more than you think they do. • Know thyself. • And one

more: “They” — the ones who don’t teach this stuff anymore — are us.

Things they (apparently) don’t teach anymore

lastwordSCOTT BRUNNER

Scott Brunner is VAR’s (rather opinionated) CEO. E-mail him at [email protected]

2010_9-10_Commonwealth

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